History of AtariTel. Phones and videophones from the secret department of the company


In 1876, Alexander Graham Bell uttered his historical phrase, “Mr. Watson, come here. I need you". His assistant, Watson, heard the words coming from the prototype of the telephone speaker, and entered the room in which Bell had just said them in the prototype of a telephone microphone - that is how the telephone was born.


Just two years later, George Dumorier’s imagination evolved into a drawing in which a person sitting on a chair communicates with a woman on a projected screen, also holding a phone. In 1910, a French postcard was released with almost the same scene, announcing that such a phone would be in 2000.


In the late 1920s, Bell Laboratories already explored video-telephone technologies, and the dream of them was further fueled by a scene from the 1927 film Metropolis. In it, two men communicate through ordinary handsets over a huge telephone system with a tiny screen on which they see each other.

In 1956, Bell Laboratories produced a demonstration of its "Picture-Phone", which worked between Los Angeles and New York, finally showing that the idea of ​​communicating live images could become a reality. The system required three separate dedicated telephone lines: one for transmitting video to New York, one for Los Angeles, and a third for voice. All three of these separate lines had to be synchronized over the network of the telephone operator.


Videophones gained really wide popularity after the 1964 World's Fair in New York, which demonstrated the possibility of video communications between New York and Washington. The 1964 system, like previous systems, required three separate special lines for its operation. Bell Labs tried to implement several commercial videophone networks between New York, Washington and Chicago, but because of the high price that reached $ 27 per minute, the venture failed. Despite the commercial failure of picture-phone due to the need for specialized infrastructure and an excessively high price, the society was still fascinated by the idea of ​​the possibility of making video phone calls.



She gained a new breath thanks to the screening of the futuristic animated series "Jetsons", first aired in 1962. In almost every episode of the cartoon, video phone calls were an everyday occurrence. The 1969 Stanley Kubrick science fiction film 2001: A Space Odyssey also featured a very realistic scene with a father making a videophone call to his daughter. The film showed what AT&T public payphone should look like in the future.


Even more inspired by all of this, AT&T, with its research and marketing capabilities, as well as huge financial resources, decided to continue working on transforming videophones from fantasy into commercial reality. In 1970, AT&T made another attempt with its Picturephone II system and network in Pittsburgh, PA. However, the experiment was just as quickly recognized as a failure and collapsed, and the telephone giant Bell backed away from it and made no further attempts for almost 15 years.

In 1976, in the foothills of the California Sierra, the Grass Valley Research and Development Lab, called Cyan, decided to accept the challenge. Its unusual design for video transmission technology was called “Phoney”. “Do not forget that at that time there were no DSP chips and cheap memory, so it was difficult to do something practical,” recalls Larry Emmons. The design concept was shown to Nolan Bushnell and Joe Keenan. Joe decided that it could be an entertainment device, the design of which should resemble a toy, and not a device for business or commercial use. Larry Emmons, Dave Stokes and Michael Cooper-Hart set to work on a prototype simulation. While Larry and Dave were engaged in development, Michael took over the duties of the project concept manager - in the end, he was hired for project management and industrial design,as well as to help finance projects (especially a videophone project). The project with video calling definitely needed support and funding! When Michael first saw the project in the laboratory, and this was just a small 16 x 16-inch illustration, he immediately realized that a demonstration prototype and an application for funding were required. Subsequently, the team made a demonstration prototype consisting of two desktop base devices, the wires of which ran throughout the laboratory into a frame system of removable printed circuit boards, which contained all the electronics. Since these were just the first stages of product development, the need to work on individual parts of the system required the installation of a large frame cabinet with all the main electronic components.

Unlike AT&T projects, the original prototype did not use a telephone line. It was connected by a specialized system of conductors laid from one office to another office on the opposite edge of the laboratory. However, in order to guarantee product compatibility with standard telephone lines, it was limited by the data transfer speed and capabilities of that time (the parameters of fax machines that appeared recently and were very expensive were taken as a reference). Larry Emmons and the Cyan team came up with the theory that pauses during telephone conversations can be used to insert transmitted graphic data. Test equipment worked quite well and allowed to simultaneously send photos of limited resolution on only one side; the image of the first interlocutor A was transmitted from one side of the connection,and after the process was completed, it was performed in the opposite direction. With such a system, a voice signal took precedence over images, and a picture was received line by line during pauses of the audio signal.

One day, Nolan and the company, as part of regular checks on the status of Cyan projects, came to Grass Valley to watch a demo of a videophone. When the time came to demonstrate the phone, one part of the installation was located in the main office, and the second in the distant laboratory. Everyone took turns experimenting with her and were very pleased, but when they returned to the main office, Nolan suddenly disappeared. The demonstration continued to work by exchanging blank photographs. Suddenly, Lanny Nets noticed how a suspiciously recognizable “object” begins to invade the video signal. Trying to distract attention from the screen, Larry continued the conversation to block the incoming image by priority of voice communication. However, the inevitable happened: the whole image was uploaded to the screen, making it clear to everyone in the office where Nolan was and what he was doing.Bushnell's buttock spectacle greeted everyone in the office. This event did not deserve the same historical respect as the famous “Watson, come here”, but it was definitely a momentous moment for everyone who was watching the “total lunar eclipse” in the Atari classic style!


Atari employees with their developed Pong slot machine. Center: Nolan Bushnell and Larry Emmons.

After the demonstration, Ron Milner (who was not involved in the development of the project) needed a power source for another project, and the power supply for the demonstration device was ideally suited for him. Turning off the power supply, he involuntarily touched a 110-volt wire with a 5-volt line from the frame cabinet. As a result, the whole office was filled with fireworks and smoke: almost as in the scenario, the cards burned one after another, emitting sparks, smoke and fire. “It was a real show. Fortunately, I didn’t burn the laboratory, and the fire sprinklers didn’t work, ”recalls Ron Milner.

With regard to “knocking out” Atari's project financing, Michael was so successful that he earned the nickname “Michael Corporationhart,” which he proudly wore. Someone had to help fund such great ideas, and Michael became the person behind the scenes to glorify the great work Cyan did. Although work on Phoney continued, by 1979 the project had become a low priority for Cyan, and later it was added to the outcome of Grass Valley projects in the “Disasters” category.

However, in 1981, Project P (as it was now called) returned; in the engineering report for that year it was dryly written "you need to try again."

Perhaps the aroused interest was triggered by the emergence of a new department by Steve Bristow called Ataritel, which was created to bring the Atari high-tech line of phones with previously unseen capabilities to the consumer phone market. Bristow saw Phoney as an addition to the new department, and the still-growing Ataritel videophone project was called Eagle or Eagle Eye.

In the late 1970s and early 1980s, dial-up telephones were still used in many households, because installing touch-tone telephones was still a difficult process. First you had to order a tone dialing service for your telephone line; depending on location, it cost between 2 and 5 dollars a month. Having received the service, one could hope to get a tonal telephone rental. Yes, it was rental, in those days it was impossible to buy a telephone; it had to be rented from Bell Telephone. And after ordering an improved telephone network and telephone, the Bell telephone master came to your home and installed it for a fee. Of course, in this niche there is an opportunity for competition.

So why were there so few competitors? Initially, Bell Telephone did not allow any unauthorized phones to be connected to its network, and even forbade the modification of its own devices. In 1956, Bell Telephone lost the lawsuit, making it possible to use third-party devices, as well as modify the devices of the company itself, provided that such devices do not harm its telephone network. Unfortunately, with the exception of new phones and products of large companies, only Bell phones seemed to be of high quality due to previous restrictions in the eyes of the average consumer. This was also facilitated by the fact that during calls to technical support or the installation of new outlets by Bell monitors, homeowners were informed that connecting phones not purchased from a telephone companycan cause maintenance problems, and any maintenance calls will be very expensive. This tactic of manipulation is often used to scare people away from independent choice.

Atari entered the telephone market when, in 1981, Steve Bristow set about assembling his new consumer technology research and development department. One of the technologies that intrigued Steve and his team was wireless intercom systems (intercoms).

They began to look for an opportunity to implement something similar on the basis of telephone systems. The team put together a prototype wired system and brought it to New York to showcase Manny Gerard and Steve Ross of Warner Communications. Warner was interested in the prototype and demonstration; moreover, Steve’s consumer technology research and development team has been transformed into the new Atari phone department called Ataritel. It was impossible to ignore the idea of ​​developing a line of telephone devices capable of providing impatient customers with such chic features. Atari's engineers spotted this need, and Warner Communications fully supported the idea of ​​developing it as a high-tech branch of this area, which certainly should have become a powerful source of revenue,providing homeowners with the expected and necessary amenities. Atari's marketing and management departments, which closed many game projects out of fear that they could negatively impact Atari VCS sales, also welcomed the new product line. The fact that the device will not be entertaining meant that it could not become a competitor to Atari VCS or hinder the sale of cartridges (and, more importantly, would not affect the premiums of employees in these departments).will not affect the bonuses of employees of these departments).will not affect the bonuses of employees of these departments).


Atari «Telectra». , , .

The planned line of phones was supposed to provide the buyer with advanced features that were not often found in the phones of that time: redial, call waiting switch, mute, call hold and full duplex speakerphone, allowing both parties to simultaneously speak and hear the other person. Today this is not a problem, but at that time it was a serious technological obstacle, the overcoming of which would give the product line a huge competitive advantage. The potential possibility of introducing home control functions was also discussed, but instead they decided to develop another very advanced project called “transmission technology over the electric grid”. In many houses, phones were connected only in separate, frequently visited places - usually the main phone was in the kitchen,and the other in the living room or study, or perhaps in the bedroom. Often this was a problem for the market of new home telephones: consumers depended on the will of the telephone company, whose representatives came to their home and charged an additional fee for laying new outlets in other rooms. Atari understood: in order for its products to enter homes, it somehow needed to win the favor of consumers by providing simple but high-tech solutions that far outstripped the capabilities of Bell and other competitors. Particularly important was the fact that its telephone systems, operating on the mains, would bypass Bell's control over telephone outlets. The mains telephone system consists of a central station connected to an existing telephone jack and to a regular wall power socket.The trick is that the socket is used not only for power, but also for communication with a set of secondary phones. In fact, the central station is installed with its own home telephone network, for which the homeowner can buy additional telephones and connect them to the same network as the central station. After that, it’s enough to simply connect an additional phone to an electrical outlet anywhere in the house, connect to the receiver and be able to make calls from this room. Now the landlord could take the call in the kitchen, put it on hold, and then go to his office or another room, pick up the additional telephone and continue the conversation.the central station is installed with its own home telephone network, for which the homeowner can buy additional telephones and connect them to the same network as the central station. After that, it’s enough to simply connect an additional phone to an electrical outlet anywhere in the house, connect to the receiver and be able to make calls from this room. Now the landlord could take the call in the kitchen, put it on hold, and then go to his office or another room, pick up the additional telephone and continue the conversation.the central station is installed with its own home telephone network, for which the homeowner can buy additional telephones and connect them to the same network as the central station. After that, it’s enough to simply connect an additional phone to an electrical outlet anywhere in the house, connect to the receiver and be able to make calls from this room. Now the landlord could take the call in the kitchen, put it on hold, and then go to his office or another room, pick up the additional telephone and continue the conversation.connect to the receiver and get the opportunity to make calls from this room. Now the landlord could take the call in the kitchen, put it on hold, and then go to his office or another room, pick up the additional telephone and continue the conversation.connect to the receiver and get the opportunity to make calls from this room. Now the landlord could take the call in the kitchen, put it on hold, and then go to his office or another room, pick up the additional telephone and continue the conversation.


In addition, telephones could be used as intercom between rooms. Over the next two years, design and product development continued. The company has signed an agreement with Porsche Design and Morison Cousins ​​Associates to create a design that can give new products a unique and modern look. The design of Morison Cousins ​​was chosen for her Space-tel phone style, which had a very clear, attractive, high-tech appearance. In addition, it was easy to use and suitable for many different functions that models and product lines should have.


Design Space-tel

By March 1983, after almost two years of secret work, Atari told the public about her new secret department. To add an atmosphere of mystery, the marketing department, run by Dick Mier, issued a press release stating that the entire department was secretly working under the code name “Project Falcon” (“Project Falcon”).

And in fact, unlike previous Atari products, code names of which were usually female names, all Ataritel products were named after the bird species Falcon, Eagle, Pudgy and Parrot. A marketing campaign began in which the name Ataritel was covered with fabric. The inscription was clearly read, but it created the feeling that after the "breakdown" the public would learn much more. Marketing Specialist Kim Soulek demonstrated prototype design at numerous events and fairs throughout the year, including the Telephone Show in San Francisco.


Unfortunately, many events later connected with the emergence of the new Atari CEO James Morgan, after huge financial losses succeeded Ray Kassar in this post. For a month, James assessed the state of affairs, and then began to close projects and products that, in his opinion, were not necessary for the restoration of Atari. One of these projects was Ataritel. At first, the staff of the department was cut in September, but by October its main part was distributed to other projects and departments, or completely left the company. Ataritel’s internal work was discontinued - even Steve Bristow moved to the home computer department to work with Dave Stabben to reformat his product strategy and plan new computers and products for the next two years.Phones of the future did not get a chance to be released in the future, and the Ataritel project, like an unwanted phone call, was put on permanent hold. There was a glimmer of hope for the product in April 1984: a brief statement was made that Atari was still considering launching the Ataritel product line. But nothing came of this statement. Rumors reached Cyan that the Ataritel project was canceled, and work on their “Project P” was canceled with it. The videophone also does not get a chance to go into the world from the Cyan laboratory and fall into the hands of consumers. Falcon, Eagle and their "eggs" have not hatched.that Atari is still considering launching its Ataritel product line. But nothing came of this statement. Rumors reached Cyan that the Ataritel project was canceled, and work on their “Project P” was canceled with it. The videophone also does not get a chance to go into the world from the Cyan laboratory and fall into the hands of consumers. Falcon, Eagle and their "eggs" have not hatched.that Atari is still considering launching its Ataritel product line. But nothing came of this statement. Rumors reached Cyan that the Ataritel project was canceled, and work on their “Project P” was canceled with it. The videophone also does not get a chance to go into the world from the Cyan laboratory and fall into the hands of consumers. Falcon, Eagle and their "eggs" have not hatched.

During the turmoil of 1984, the consumer electronics department (which included the home computer department) was sold to Tramel Technologies, Ltd., and the Ataritel department, along with the arcade department and Atari Adventure Centers, were retained by Warner Communications. Former Ataritel executives tried to acquire the entire department from Warner and develop it as a separate company independent of Warner. Unfortunately, Warner did not accept the terms of the deal. Seeing the value in Ataritel’s assets and, in particular, in the videophone, Manny Gerard negotiated the sale of the product to Medama, which was a newly formed US subsidiary of Mitsubishi Electric, created as a company for development and marketing in the US market.

Seeking to make Ataritel independent, Roy Elkins turned to Medama for funding, and after Warner refused to let go of the department, he invited Manny Gerard to acquire the rights, intellectual property, and assets of the videophone project. During one of the demonstration meetings between Warner, Ataritel and Medama, the Cyan videophone was connected to the Warner conference room in New York. In Cooper Valley, Michael Cooper-Hart was gearing up to send a video to demonstrate the product to the Mitsubishi team in Japan. Cyan's Larry Emmons also participated in this meeting, so he started a videophone call to Michael Cooper-Hart. Over the speakerphone, Michael informed Larry that a friend had looked at him, and a playboy magazine spread image began to appear on the screen of the conference room. Everyone present burst out laughingand who sealed the deal and allowed to continue negotiations on the acquisition of a videophone project.

During the negotiations, Manny quickly realized that there was an information leak - Stan Zavadovich, acting on behalf of Medama, knew too much about the product, including information that was not published in the documents and was not discussed earlier. Manny decided to use this leak to his advantage - inside Warner and Ataritel, he began to talk about the fact that Warner received a much more generous offer to buy a videophone, and that he was thinking about negotiations with this other company. Zavadovich suddenly offered a better deal, and Manny took advantage of this turn, selling the rights, intellectual property and assets of the Medama videophone project project much more expensive than previously planned. The original Videophone team, consisting of Larry Emmons, Michael Cooper-Hart, Chris Wright and Roy Elkins,teamed up again to work at Mitsubishi's new US subsidiary. They continued to work on the Atari videophone, improved and completed the project in accordance with the new instructions and requirements set by Mitsubishi. Later, they were joined by the long-known Kurt Wallace - former AMPEX executive Nolan Bushnell. In 1986, the videophone was finally released under the name Mitsubishi Lumaphone.



Mitsubishi Lumaphone

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